What you can do to battle your school-related debt until it’s six feet deep.
As the world becomes smaller and more mobile, getting a good job has become tougher than ever. To prepare for the job market, you often have to get a college education. And if you’re like most college graduates, a solid understanding of your favorite subject isn’t all you left campus with. You were also handed thousands of dollars of debt.
So how do you get out from underneath the crushing weight of your college loans? Read on to find out.
Focus Your Energies
Graduating from college is exciting. You’re finally on your own. You’re doing what you want when you want, and all your money goes where you want it to go. But before you decide to buy every video game console ever made, take a good look at your student debt. Write down the amount you owe and post it somewhere prominent – such as on your refrigerator or bathroom mirror. Then use this daily reminder to propel you to focus on saving money to pay off your student loans.
You should also make more frequent payments on your loans than required. When you send the additional payment, make sure you clearly indicate it is to go toward the principal amount owed and not the interest. Also, if you can only handle multiple monthly payments with one of your loans, make it the one with the highest interest level.
Cut Your Costs
There is a time and a season for making spur-of-the-moment shoe purchases. If you have to decide between making a loan payment and getting some new high-heels, this is not the time for a splurge. Have a hard time saying no to your spending habits? Then cut back on the big expenses.
Live in a smaller house or rent an apartment, pay cash for your automobile, and don’t make other large purchases that require payments. With these adjustments, you should be able to do your thing without missing payments on your school loans. You may even find you enjoy the simpler life!
Paying off your college debt can be overwhelming. Keep perspective by making payments part of your regular budget. And once you are well aware of the need to pay extra on your student loans, take down the reminder of your debt from your refrigerator and start living life. Afraid you’ll have a hard time keeping a handle on your good times? Be meticulous about your budget. Plan out all your monthly expenses and keep an envelope filled with “good-times” cash. Once the money is gone, so are the good times – so pace yourself!
In the event you come across hard times and are unable suddenly to make a payment on one or more of your loans, don’t wait for the loan company to notice. Call and request an extension. If you’re nice, you may talk your way out of all kinds of penalties. Even if you wind up paying penalties, you’ll have the satisfaction of knowing you did all you could to sidestep unwanted fees.
Beat It First
Looking into furthering your academic career? Afraid of the loans required to make your degree a reality? There are a couple of ways to avoid substantial debt after your college days.
Way One: Go to a public school. They are typically less expensive than the private alternatives and have a wide range of degree opportunities.
Way Two: Get in the scholarship mode. Want some help paying off college bills that you don’t have to pay back? Then perform well in school, play a sport, or find other ways to get scholarship funds.